Determinants of Sustainable Relationships in the Albanian Apple Production Sector

This paper analyses the behaviour of Albanian apple growers and their relations with buyers based on a structured survey. We develop a model of relational governance that highlights the importance of sustainable (lasting) relationships and draws upon different theoretical frameworks such as transaction cost economics and social network theory and focuses on determinants of relational exchange. The findings support the social network argument that the presence of verbal agreements between business partners strongly and positively affects exchange relationships. Asset specificity and competition among buyers also affects such relationships. The results and their implications at the management and policy-making level are discussed in detai

Relational governance – an examination of the apple sector in Albania

This study provides an in-depth analysis of the value chain governance in the fruit sector in Albania. Particular attention was paid to the nature of relations between agricultural producers and marketing channel chosen by them, distinguishing between big wholesalers, local collectors and exporters, longer-term relations, commitment and trust, and contracting along the value chain. Given the absence of, or weak, contract enforcement and the clear evidence of embeddedness in dyadic relationships in this chain, we focused our analysis on sustained relationships, contracting and personal bonds as a determinant factor to improve business relationship quality. This paper is based on a structured survey targeting 182 orchard farmers in two leading fruit production regions in Albania, namely Korca and Peshkopia. The survey showed a weak prevalence of verbal contracts in embedded relationships. The percentage of contracts between farmers and local collectors is slightly higher compared to wholesalers. This evidence is much stronger when we investigate the incidence of contracts in stable relationships (i.e. selling to the same buyer). We also find that mature relationships generate higher sustainability - a result which does not come as a surprise, although the coordination between farmers and other actors downstream is only at early stages. The main implications which arise from our analysis are relevant for agribusinesses, farmers and policy makers

To Contract or not Contract: Implications for Farmer–Buyer Trading Relation Performance

The paper analyses the value chain coordination of greenhouse vegetables in Albania, which has a strong export orientation. Based on a structured farm survey, the study constributes to the value chain literature of the vertical coordination of agricultural products by addressing the question of how chain governance modes differ in terms of exercised power and farmers’ satisfaction (an indicator of performance) with the trading relationship. The results point out that farmers operating with agreements show higher levels of satisfaction with the trading relationship than do farmers selling on the spot market. On the other hand, those operating with agreements are under higher levels of exercised power over product quality

Consumer preferences for goatkid meat in Albania

The objective of this paper is to analyse consumer preferences for goat-kid meat attributable to the market potential of mountainous areas and the valorisation opportunities arising from the certification of origin. The study explores consumer preferences toward the main attributes of goat-kid meat such as origin, weight and quality-certification. A Conjoint Choice Experiment was utilised to design the survey and a Latent Class Analysis Model employed to analyse the results of a survey carried out with 250 residents living in urban areas of Tirana. Origin was found to be the most important factor for all three identified consumer classes. This result can be used to producers’ advantage if labelling and other marketing tools are available to inform consumers of the products’ origin. Implementation and enforcement of origin identification should be a priority for the government and other stakeholders

The impact of government subsidies on the olive and vineyard sectors of Albanian agriculture

This study analyses the impact of government subsidy schemes on farm production capacity, technical efficiency and use of idle production factors (land and labour) in the olive and vineyard sectors of Albanian agriculture. The paper uses a quasi-experimental design by applying a propensity score matching method based on a structured survey conducted in 2013. The results show that the government subsidy scheme had a net positive impact on areas planted with olives and grapevines, and on part-time on-farm employment. On the other hand, no significant net impact was observed regarding farm size and crop yields. This is the first time that such an in-depth impact assessment of government subsidies in the agriculture sector has been carried out in Albania, thus the results will be useful both for scientists and policy makers in agriculture and rural development

What explains collective action: The impact of social capital, incentive structures and economic benefits

This study focuses in testing the power of reciprocity and leadership as collective action incentive structures and cooperation economic benefits in explaining collective action initiation in the context of a post-communist transition economy. The paper is based on a structured survey targeting Albanian export-oriented farmers. Different from most previous studies, this paper uses both regression analysis and machine learning procedure which is better suited for analysing non-linear relationships. The empirical findings are at odds with common sense that non-cooperation is the dominant strategy, because the presence of tolerant reciprocators and leadership resources provide promising incentive structures for collective action development. KEYWORDS: Albania, collective action, collective action benefits, incentive structures, leadership, power, reciprocit